Maximum Growth Portfolio Lite
National Bank Financial analysts created this portfolio of exchange-traded funds for investors who are willing to live with high levels of risk in order to increase long-term returns, and who are more interested in growth than generating income. It's a streamlined version of the full Maximum Growth Portfolio, which is presented here as well.
| Fund | Ticker | Weight (%) * | MER (%) |
|---|---|---|---|
| Canadian stocks | |||
| BMO S&P/TSX Capped Composite Index ETF | ZCN-T | 25.5 | 0.06 |
| Comment: Holds the shares of 230 or so large, medium and smaller-size companies and has a super-cheap fee. Interchangeable with the iShares S&P/TSX Composite Index ETF (XIC). | |||
| U.S. stocks | |||
| Vanguard U.S. Total Market Index ETF | VUN-T | 28.0 | 0.16 |
| NBF's highest recommended product for U.S.-market exposure covers about 3,600 stocks and in terms of cost is a bargain. | |||
| International stocks | |||
| BMO MSCI EAFE Hedged to CAD Index ETF | ZDM-T | 16.0 | 0.23 |
| Coverage of markets outside North America, with currency hedging. NBF likes that because of risk of the euro declining and thereby eroding returns from European stocks for Canadian investors. | |||
| iShares MSCI Emerging Markets IMI Index ETF | XEC-T | 5.0 | 0.25 |
| NBF considers this to be a superior way to invest in emerging markets because there's exposure to large, medium and small companies. | |||
| Canadian bonds | |||
| Vanguard Cdn. Short-Term Corp. Bond Index ETF | VSC-T | 10.0 | 0.17 |
| Adds yield by focusing on corporate over government bonds and takes a defensive approach by sticking to short-term bonds. | |||
| High yield bonds | |||
| Horizons Active High Yield Bond ETF | HYI-T | 5.0 | 0.69 |
| NBF says the team running this actively managed fund has consistently been able to produce better returns than index-tracking ETFs in the high yield category. | |||
| Alternative investments | |||
| Horizons Morningstar Hedge Fund Index ETF | HHF-T | 10.0 | 0.95 |
| Complicated and expensive, but included here with the goal of generating returns that are not correlated to the stock market. If you're doubtful about this ETF, leave it out and put more in bonds. | |||
| Total | 100.0 | 0.26 |
Maximum Growth Portfolio
Here's the Maximum Growth Portfolio as initially designed by National Bank Financial.
| Fund | Ticker | Weight (%) * | MER (%) |
|---|---|---|---|
| Canadian stocks | |||
| BMO S&P/TSX Capped Composite Index ETF | ZCN-T | 16.3 | 0.06 |
| First Asset Morningstar Canada Value Index ETF | FXM-T | 8.2 | 0.68 |
| U.S. stocks | |||
| Vanguard U.S. Total Market Index ETF | VUN-T | 18.7 | 0.16 |
| PowerShares S&P 500 Low Volatility CAD Hedged | ULV-T | 9.3 | 0.35 |
| International stocks | |||
| BMO MSCI EAFE Hedged to CAD Index ETF | ZDM-T | 6.8 | 0.23 |
| Horizons Active Global Dividend ETF | HAZ-T | 6.8 | 0.93 |
| iShares MSCI Emerging Markets IMI Index ETF | XEC-T | 6.8 | 0.25 |
| Canadian bonds | |||
| iShares High Quality Canadian Bond Index ETF | CAB-T | 3.6 | 0.14 |
| Vanguard Cdn Short-Term Corp Bond Index ETF | VSC-T | 3.6 | 0.17 |
| High yield bonds | |||
| Horizons Active High Yield Bond ETF | HYI-T | 4.8 | 0.69 |
| Alternative investments | |||
| iShares S&P/TSX Capped REIT Index ETF | XRE-T | 10.5 | 0.60 |
| Horizons Morningstar Hedge Fund Index ETF | HHF-T | 4.5 | 0.95 |
| Total | 100.0 | 0.37 |